-
Apr 23, 2025
-
Pay new income tax TCS of 1% on these luxury goods above Rs 10 lakh; CBDT issues notification
The Central Board of Direct Taxes (CBDT) has issued a notification specifying the list of luxury goods on which tax collected at source (TCS) will be levied. The CBDT has issued two notifications in this regard. The first notification deals with the nature of luxury goods, while the second one deals with the tax rate and threshold purchase amount above which tax will be levied.
It was a long-awaited notification, as the TCS on luxury goods was announced in the July 2024 Budget. The Budget 2024 memorandum stated that the TCS on luxury goods will be applicable from January 1, 2025. However, there was no notification in this regard to date.
The notifications issued on April 22, 2025, state that the new rules take effect from the date of publication.
|